Home Solutions Of America Inc fka HSOA

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From today's CEOCast...

"On Monday, an amendment the SEC passed related to Regulation SHO goes into effect. Regulation SHO sets out rules governing short sales, including the mandatory close-out requirement that applies to securities in which a substantial amount of fails to deliver have occurred. The amendment eliminates one of the exceptions to the Close-out Requirement for fails to deliver established prior to a security becoming a Threshold Security ("grandfather provision").

The amendment requires market makers and brokerage firms to close out any previously-grandfathered fails to deliver in a security that is on the Threshold Security List (TSL) on October 15th. The close-out must occur within 35 consecutive settlement days of October 15th. If a security becomes a Threshold Security after October 15th, all fails to deliver must be closed out within 13 consecutive settlement days.

As of Friday, there were 89 Nasdaq companies on the TSL, including Home Solutions of America, Inc. (NASDAQ: HSOA-40% of float short). Traders may want to focus on the TSL stocks for potential price appreciation due to implementation of the rule, which could create short-covering or increase the cost of borrowing these securities."

http://www.ceocast.com/(q3gh0i55es5zgv45invwdd3u)/NewsLetters.aspx?id=417&mode=

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